Current trading week in the FOREX market started with the strengthening of the dollar. But on Thursday, the U.S. currency again come under pressure. Data on capital flows disappointed bull increase the dollar, and quotes the U.S. currency lost all reclaimed levels. Was a strong report on retail sales in the UK. This allowed the pair GBP/USD to rewrite the local maximum and go higher.
At the moment the pound against the dollar is quoted at 1.5634 . The immediate goal in the short term is the level of 1.57 . As for the long-term prospects for the pair, then there is likely a negative picture for the British currency. The Bank's policy for a long time will remain soft enough. The head of the Bank of England has repeatedly stated that interest rates will remain low even compared to the signals on the strengthening of the economy. Currency strategists at investment bank Morgan Stanley believe that the pound by the end of the year will decrease by about 5 % to reach 1.48 dollars.
Likewise, if you and the pair EUR/USD. In yesterday's trading session, during U.S. trading, the euro quotes again experienced significant demand, reaching 1.3360 . It should also be noted that not all members of the Federal Reserve maintained a speedy reduction in bond repurchase program. James Bullard, who served as head of the Federal Reserve Bank of St. Louis, said he did not agree with such hasty conclusions regarding the economic situation in the United States. In his view, the Fed should have some time to watch the trends of macroeconomic parameters. It was only after the inflation target level (2 %) can go to the top to minimize the program of quantitative easing.
The technical picture in EUR/USD pair is not in favor of the bears. Some experts attribute the current strong demand for euro assets by Japanese purchases of European funds. It is likely that once the limits of the funds are exhausted, we will see a significant weakening of European currencies.
Good luck trading!Social button for Joomla